Special Needs Trusts - Grand Traverse County Probate Court

Grand Traverse County Special Needs Trust Requirements

Because Supplemental Security Income (SSI) and Medicaid are means-tested government benefits, assets or income owned or controlled by a disabled person will affect that person’s eligibility for those public benefits.

A first party self-settled special needs trust (SNT) provides a mechanism for the disabled beneficiary’s assets or resources to be held in trust for his or her benefit without disqualifying the beneficiary from eligibility for the means-tested government benefits.

These special needs trusts are subject to federal assets counting rules, the Michigan Trust Code and the supervision of the Probate Court. The Probate Court has full authority to order the inclusion of any trust provision reasonably calculated to be in the best interests of the disabled beneficiary and protect the disabled beneficiary’s assets.

To protect the disabled individual and the assets placed in trust, the Grand Traverse County Probate Court requires the following procedures and documents for the creation of a first person self-settled special needs trust:

Court appointment of a Guardian ad Litem (GAL) - Payment for GAL services to be provided from the trust

Copy of the trust document or joinder agreement

Copy of the proposed order creating the trust

Copy of the complete criminal history of the proposed trustee

Bond in the amount of assets held in trust

All federal requirements for the creation of a special needs trust shall be established or included in the trust document, including but not limited to:

Proof of disability

Proof that the trust assets are owned by the beneficiary

Proof that the beneficiary is under the age of 65 (d4A trusts only)

Provision that the individual is the sole beneficiary of the trust

Proof that the trust was established by a parent, grandparent, guardian, conservator, the disabled individual if competent and creating a d4C trust, or the court